How the Cost for Fleet Operators Can Be Reduced Through the Use of Fleet Management Software
Private fleet operators are now under lots of pressure to cut expenses. On top of that, an acute lack of seasoned drivers has put a dent in private fleet operators’ balance sheet. Companies are at many times not well staffed. As a result, managers are being forced to pay huge amounts of money to qualified drivers. Add rising fuel costs and increasing maintenance costs to this, and it’s simple to see just why it is so essential to invest in fleet management software.
Always, good investments are totally worth it since, in due time, they will pay for themselves. With the fleet management software, it will pay for itself rather quickly. Think of a distributor with thirty trucks for instance. On ordinary days, all vehicles are utilized, each of them covering hundred miles, and making nearly eighteen stops a day. Standard fuel use is around seven miles per gallon. Truck drivers are given fifteen dollars/hour, plus extra in the event of overtime. On a given day, a third of the trips are for 8 hours.
With diesel prices escalating, this distributor needs to spend thousands of dollars on fuel each week. An easily attainable reduction in mileage can lead to savings of up to hundreds of dollars a week. In a year, this totals to higher than thirty to forty thousand dollars. Eradicating 2 hours of overtime for at least 10 drivers, results in saving about several thousand dollars each week. That is another 80,000 each year.
If drivers have a tendency of leaving the engine to run so as to keep warm during winters and stay cool during summers, the fleet operators are forced to cater for the bill. Diesel engines use nearly one gallon of fuel per hour, even when there’s inactivity. Once businesses start utilizing a fleet management system they are going to recognize that most drivers leave the engines running idly for at least two hours a day. In the distributor situation, this might cost almost 50,000 dollars each year, which is an unnecessary loss that can easily be avoided by the company. Additional advantages of a GPS fleet management system may include reports which show episodes of bad speeding and breaking. This info can be of help to fleet operators to reduce risk and reduce insurance rates.
Given the pressure fleet operators experience, using fleet management software makes for an excellent financial choice. This software often opens up opportunities to significantly reduce transport and personnel costs. They have also the ability to boost a company’s risk profile. Payback generally happens in half a year. And with the assistance of the right payment options, fleet management will, no doubt, improve cash flow.
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